Source: CNA
The Cyprus Securities and Exchange Commission (CySEC) has announced its decision to impose a hefty fine of one million euros on the Cyprus Investment Firm (CIF) Itrade Global Ltd. for violating provisions of the Investment Services and Activities and Regulated Markets Law of 2017, according to a press release.
CySEC's decision is based on the fact that Itrade Global failed to monitor the activities of its Tied Agent in Spain, as required by law. The company did not implement policies and procedures to identify and prevent conflicts of interest, act professionally while providing investment services to clients, or ensure that information addressed to clients was fair, clear, and not misleading.
Furthermore, CySEC found that Itrade Global failed to ensure that its personnel had the necessary knowledge and competence to provide information about financial instruments, investment services, and ancillary services to clients. The company also did not request clients to provide appropriate information about their knowledge and experience, thereby not being able to assess whether the offered product or service was appropriate for them.
CySEC's decision also highlighted the Company's infringements of articles of the Law pertaining to the compliance function, the product approval process, and its obligation for keeping records of telephone conversations.
The Commission has commended the National Securities Market Commission for its cooperation and assistance during the investigation.
Chairman of CySEC, Dr. George Theocharides, has stressed that the Commission takes any misconduct by supervised entities seriously and is committed to stopping non-compliant operations to enhance investor protection and the responsible growth of the investment sector. He has urged CIFs to comply fully with their regulatory obligations, strengthen their compliance function and re-evaluate the competence of their staff, especially the personnel of their sales and marketing functions.
Theocharides emphasized that CySEC is strongly committed to the responsible growth of the investment sector, underpinned by rigorous supervision to safeguard investor protection.
Source: CNA
